Renewal of Accounting Firm Engagement

Ming Yang Smart Energy renews Ernst & Young Hua Ming as auditor, pending shareholder approval.

What the company is saying

Ming Yang Smart Energy Group Limited is announcing that its Board has approved the renewal of Ernst & Young Hua Ming LLP (Special General Partnership) as its financial and internal control auditor for 2026, subject to shareholder approval. The company emphasizes the auditor's scale, with 249 partners and over 1,700 practicing CPAs as of end-2025, and highlights its experience in securities-related services, noting over 1,500 CPAs with such experience and more than 550 who have signed audit reports. The announcement details the auditor’s 2025 financials, including RMB 6.501 billion in total revenue, RMB 6.284 billion from audit services, and RMB 1.693 billion from domestic securities services. The company also underscores the auditor’s compliance record: zero criminal or administrative penalties in the past three years, and a professional risk fund and liability insurance exceeding RMB 200 million. Named audit team members—Boyuan Wen (Project Partner and Signing CPA), Yucheng Huang (Signing CPA), and Xinxin Hao (Project Quality Control Reviewer)—are presented with their qualifications and clean compliance records. The tone is procedural and factual, focusing on the auditor’s credentials and the company’s adherence to governance processes.

What the data suggests

The data confirms Ernst & Young Hua Ming’s significant presence in the audit market, with 158 A-share listed company clients generating RMB 1.611 billion in annual report auditing fees in 2025 and 92 audit clients in the same industry as Ming Yang Smart Energy. The firm’s revenue breakdown—RMB 6.501 billion total, RMB 6.284 billion from audit services, RMB 1.693 billion from domestic securities services, and RMB 3.40 billion from all securities services—demonstrates a strong focus on audit and securities work. The professional indemnity coverage exceeds RMB 200 million, mitigating risk for clients. The absence of criminal or administrative penalties for both the firm and the named audit team over the past three years supports the narrative of reliability and compliance. No audit fee for 2026 is disclosed; it will be determined later based on market principles and workload. The process is not yet final, as shareholder approval is pending.

Analysis

This announcement is a routine disclosure regarding the proposed renewal of the company's auditor, Ernst & Young Hua Ming LLP, for the 2026 financial year. The tone is factual and procedural, with no promotional or exaggerated language. The majority of the content consists of realised facts about the accounting firm's size, experience, revenue, and compliance record, all supported by specific numerical data. The only forward-looking elements are the pending approval by the Shareholders' Meeting and the future determination of audit fees, both of which are standard process steps rather than aspirational claims. There is no discussion of large capital outlays, operational transformation, or future financial benefits, and no attempt to frame the renewal as a strategic or value-creating event. The gap between narrative and evidence is negligible, as the announcement is strictly informational.

Risk flags

• ●Shareholder approval remains outstanding, so the appointment is not yet effective; any unexpected opposition could delay or alter the engagement.
• ●The final audit fee for 2026 is not disclosed and will be determined by management after shareholder authorization, introducing uncertainty about the cost impact for the company.
• ●While the auditor’s compliance record is strong, the presence of three supervisory management measures and one self-regulatory measure in the past three years indicates some regulatory scrutiny, though none resulted in penalties.

Bottom line

This is a routine governance update: Ming Yang Smart Energy Group Limited is set to renew Ernst & Young Hua Ming LLP as its auditor for 2026, with Board and Audit Committee approval already secured and only shareholder sign-off pending. The auditor is a major player in China, with RMB 6.501 billion in 2025 revenue and a large, experienced team, and its compliance record is robust with no criminal or administrative penalties in the past three years. The announcement gives investors confidence in the auditor’s scale and reliability, but does not disclose the actual audit fee for 2026, leaving the cost impact unknown until management finalizes terms post-approval. The only real execution risk is the pending shareholder vote, which is typically a formality in such renewals. For investors, the key takeaway is that the company is maintaining continuity with a reputable auditor, and no red flags emerge from the disclosed facts.

Announcement summary

(LSE:MYSE) Ming Yang Smart Energy Group Limited announced the renewal of its engagement with Ernst & Young Hua Ming LLP (Special General Partnership) as its financial and internal control auditor for the year 2026. The proposal was considered and approved at the second meeting of the fourth Board on October 29, 2026, and will be submitted to the Shareholders' Meeting for final approval. Ernst & Young Hua Ming was established in September 1992, completed its localization transformation in August 2012, and is headquartered in Beijing. As of the end of 2025, Ernst & Young Hua Ming had 249 partners, with Mr. Anning Mao as chief partner, and more than 1,700 practicing certified public accountants (CPAs), of whom more than 1,500 had experience in securities-related business services and more than 550 had signed audit reports for securities service business. For 2025, Ernst & Young Hua Ming reported audited total business revenue of RMB 6.501 billion, with RMB 6.284 billion from audit services, RMB 1.693 billion from domestic securities services, and RMB 3.40 billion from domestic and overseas securities services-related businesses. In 2025, the firm had 158 A-share listed company clients for annual report auditing, with total fees of RMB 1.611 billion, and 92 listed company audit clients in the same industry as Ming Yang Smart Energy Group Limited. The sum of the cumulative limits of indemnity of the accrued professional risk fund and purchased professional liability insurance exceeds RMB 200 million. In the past three years, Ernst & Young Hua Ming received 0 criminal penalties, 0 administrative penalties, 3 supervisory management measures, 1 self-regulatory measure, and 0 disciplinary sanctions due to professional practices. Among 19 practitioners, there were 0 criminal penalties, 2 administrative penalties, 4 supervisory management measures, 2 self-regulatory measures, 1 industry disciplinary action, and 0 disciplinary sanctions due to practicing behaviors; 2 practitioners each received 1 administrative supervisory measure due to personal behavior, not involving audit project quality. The Project Partner and Signing CPA is Mr. Boyuan Wen, who became a CPA in 2010, started practicing at Ernst & Young Hua Ming in 2004, and began providing audit services for the Company in 2025. The Signing CPA is Mr. Yucheng Huang, who became a CPA in 2016, started practicing at Ernst & Young Hua Ming in 2013, and began providing audit services for the Company in 2025. The Project Quality Control Reviewer is Ms. Xinxin Hao, who became a CPA in 2003, started practicing at Ernst & Young Hua Ming in 2017, and began providing audit services for the Company in 2025. None of these individuals have received any criminal penalties, administrative penalties, or supervisory management measures related to professional practices in the past three years. The audit fees for 2026 will be determined by the Company's management based on fair and reasonable market pricing, considering business scale, industry, complexity, required audit staff, and workload, with reference to the accounting firm's fee standards. The Audit Committee reviewed and agreed to the proposal, confirming the professional competence, investor protection capability, independence, and integrity of Ernst & Young Hua Ming. The Board approved the proposal and requests the Shareholders' Meeting to authorize management to determine the 2026 audit fees and execute related agreements. The appointment will take effect upon approval by the Shareholders' Meeting.

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